The former owners of Wade Ceramics have sounded a warning to the ceramic industry after disposing of the loss-making pottery.

Beauford yesterday announced it was selling the Burslem pottery, which lost £1.21 million last year, together with its Allied Insulators subsidiary for £7.85 million.

The companies have been purchased by a management buy-out team headed by former Beauford chief executive Edward Duke.

The news came as Beauford itself revealed a pre-tax loss of £2.19 million last year which it blamed on continuing economic turmoil in Asia and the strong pound which affected sales at Wade and Allied Insulators.

Beauford is now to concentrate on its profitable VZS-Seagom advanced ceramics business which accounted for a quarter of its turnover before this week's sale.

Beauford chief executive Clive Gilham said: ‘‘Both Wade and Allied Insulators made losses last year and this sale is in the best interests of Beauford and its shareholders.

‘‘However, I do feel tremendously sorry for everyone involved in the pottery industry, particularly in Stoke-on-Trent. The forces that are hitting it are very, very powerful and very painful in such a labour-intensive business.''

Beauford admitted yesterday that negotiations had taken place with a number of parties which might have led to a bid for the group as a whole or a possible financial restructuring.

However, the negotiations did not result in a firm proposal which could have been put to shareholders.
Further talks were then held with a number of parties about the disposal of subsidiaries, leading to yesterday's announcement.

Despite its profits fall, Beauford announced a 16 per cent increase in turnover to £32.51 million for the year ending December 1998.

It recorded a loss per share of 28.75 pence and no final dividend.